The Washington Post

Carlyle follows KKR, Blackstone with strong private equity profits for second quarter

Carlyle Group turned a strong second quarter profit, due in large part to its U.S. buyout funds and performance fees from its growing European activities, the company said Wednesday.

The Washington-based private equity firm appears to be benefiting from a buoyant stock market and strong prices for the companies and other assets they buy and sell across the globe.

Its economic net income, which is a popular method of measuring profitability at investment firms, more than doubled to $318 million compared to $156 million a year earlier. Revenue was $900 million.

“The big story is the strong performance of our European private equity businesses,” said co-chief executive William E. Conway, Jr. in a statement. He said the company’s Europe Partners III fund “has begun generating substantial realized performance fees, further diversifying the composition of Carlyle’s earnings. Our European technology funds are also performing exceptionally well.”

Carlyle earned $6.5 billion from the sale of companies in the second quarter, while at the same time it poured $3.4 billion of cash into new investments.

The company continues to raise money from investors at a prodigious rate, with $7.4 billion in new money entering its coffers in the quarter. Carlyle has raised $23.1 billion in the last 12 months.

The investment firm also announced a quarterly distribution to shareholders of 16 cents per share, which means the total distribution for the first two quarters is at 32 cents.

Carlyle Group, which bills itself as a global alternative asset manager, is one of the largest of its kind in the world, with $203 billion of assets under management across 126 funds and 139 fund of funds.

Its results follow strong earnings reports from rivals KKR & Co., and Blackstone Group.

Thomas Heath is a local business reporter and columnist, writing about entrepreneurs and various companies big and small in the Washington Metropolitan area. Previously, he wrote about the business of sports for The Post’s sports section for most of a decade.



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